Solitary seems kind of harsh, but it's probably for his own protection. He must be well known in the prisons by now, and maybe he's gotten a few violent confrontations, if not sexual assault attempts against him in there. He needs to learn to respect people that are offended by nudity and limit his nudity to designated areas like the rest of the law-abiding do, but jail won't teach him that. Maybe he prefers jail and its benefits (food, shelter, health care) to getting that on his own on the outside.
You're making some big assumptions regarding his treatment in jail and reasons for being there!
I think Stephen Gough is deliberately challenging the status quo regarding nudity in the eyes of the law. If public nudity ever becomes legal, we'll have people like him to thank for it. I think he is incredibly courageous. He is also harmless, but is being treated like a dangerous person.
Its all well and good to be law-abiding, but sometimes laws are wrong and need to be changed. Some examples: Homosexuality used to be illegal, Women couldn't vote, African Americans were legally enslaved.
Also remember that it used to be considered indecent for a woman to expose her ankles, now its generally ok for people to expose most of their skin. Culture is always changing and its people like Stephen Gough that make this change possible.